The CEO of Aeeris Limited (ASX:AER) is Kerry Plowright. This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. Then we'll look at a snap shot of the business growth. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Kerry Plowright's Compensation Compare With Similar Sized Companies?
Our data indicates that Aeeris Limited is worth AU$6.6m, and total annual CEO compensation was reported as AU$136k for the year to June 2019. Notably, the salary of AU$136k is the vast majority of the CEO compensation. We took a group of companies with market capitalizations below AU$287m, and calculated the median CEO total compensation to be AU$381k.
Most shareholders would consider it a positive that Kerry Plowright takes less total compensation than the CEOs of most similar size companies, leaving more for shareholders. While this is a good thing, you'll need to understand the business better before you can form an opinion.
You can see a visual representation of the CEO compensation at Aeeris, below.
Is Aeeris Limited Growing?
Aeeris Limited has increased its earnings per share (EPS) by an average of 57% a year, over the last three years (using a line of best fit). It achieved revenue growth of 18% over the last year.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. This sort of respectable year-on-year revenue growth is often seen at a healthy, growing business. Although we don't have analyst forecasts you might want to assess this data-rich visualization of earnings, revenue and cash flow.
Has Aeeris Limited Been A Good Investment?
Most shareholders would probably be pleased with Aeeris Limited for providing a total return of 38% over three years. So they may not be at all concerned if the CEO were to be paid more than is normal for companies around the same size.
Aeeris Limited is currently paying its CEO below what is normal for companies of its size.
Considering the underlying business is growing earnings, this would suggest the pay is modest. The pleasing shareholder returns are the cherry on top; you might even consider that Kerry Plowright deserves a raise! It is relatively rare to see a modestly paid CEO when performance is so impressive. But it is even better if company insiders are also buying shares with their own money. Shareholders may want to check for free if Aeeris insiders are buying or selling shares.
Important note: Aeeris may not be the best stock to buy. You might find something better in this list of interesting companies with high ROE and low debt.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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